Automatic Bank Services Limited (SHVA) Q1 2024 earnings summary

Executive summary

• Q1 2024 revenue was NIS 36,801 thousand and net income NIS 12,101 thousand, compared with NIS 30,731 thousand and NIS 7,979 thousand in Q1 2023.

• Core payment infrastructure continued operating regularly amid the war; activity in payment cards had recovered across most sectors from December 2023.

Financial highlights

• Revenue from card companies was NIS 32,045 thousand vs NIS 28,382 thousand YoY; revenue from other services was NIS 4,756 thousand vs NIS 2,349 thousand.

• Operating expenses were NIS 23,294 thousand vs NIS 20,960 thousand; operating income was NIS 13,507 thousand vs NIS 9,771 thousand.

• Net finance income was NIS 2,025 thousand vs NIS 594 thousand; net income was NIS 12,101 thousand vs NIS 7,979 thousand.

Outlook and guidance

• Enriched Mastercard data for issuer authorization decisions was expected to launch as a nine-month pilot by end-Q2 2024; a full rollout would depend on the pilot outcome.

• Contactless capability for closed-loop payment cards, developed with Mastercard and Israel’s first CLP operator, was expected to be implemented in Q3 2024.

• Ofek and Matrix ATM operators were expected to connect in July 2024; Smart ATM Services was expected to join in January 2025.